Malaysia Market

Malaysia Market

FBM KLCI slumped for forth day as investors panics over Euro market and US market continually dropping. The FBM KLCI ended down by 25.0 points to 1,536.004 and the most active counters were seen Petronas Chemical, UEM Land, RHB Capital and Genting.

The FKLI spot month contract dropped by 25.5 point to 1,524.0 the futures index closed at a volume of 12,491 lots and open interest at 29,859 contracts.

European stocks dropped for a third day, to their lowest level this year, amid growing concern Greece will be forced to leave the euro area. Meanwhile, Asian stocks fell, with a regional benchmark index headed for its biggest loss this year, as Greece’s move to call new elections increased concern the country will leave the euro and derail efforts to contain the region’s debt crisis.

Today market may see continually to be traded lower as Greece’s deb crisis worsening offset better-than- estimated on U.S housing starts and industrial production.  We see support levels at 1523 and 1504 while the resistance levels are at 1540 and 1553.


US Market

U.S. stocks retreated Wednesday as anxiety over Greece's troubles derailed enthusiasm that came with upbeat economic reports on U.S. industrial output and housing. Down for a 10th out of the last 11 sessions, the Dow industrials fell 33.45 points, or 0.3%, to 12,598.55, its lowest close since January. The S&P 500 Index declined 5.86 points, or 0.4%, to 1,324.80. The Nasdaq Composite shed 19.72 points, or 0.7%, to 2,874.04.

FKLI

Crude Palm Oil
Crude palm oil futures traded on Bursa Malaysia Derivatives Exchange continued to plunge yesterday as concerns over the ongoing European debt crisis and Greece deepens. Prices of the tropical oil were not exempted from the overall bloody markets as it declined the most in more than 14 months.

The market may see a slight rebound today as investors holding short positions for the previous few days lock in profits. Resistance is at RM3,140 and RM3,195 while support is at RM3,030 and further down at RM3,000.

Soybean (Bloomberg)

Soybean futures for July delivery gained 0.6 percent, capping the first two-day gain since April 30. US export sales of soybeans, soybean meal and soy oil were surveyed to have increased in the week ended May 10, compared with a year earlier.

According to Oil World, global soybean production may climb 16 percent in the next year as South American crops recover from drought and farmers in the US boost planting.